"Everything we're hearing from a lot of his advisers is that the budgets, near-term, are going to remain pretty much intact, so we think that the market is pricing-in some cuts to defense spending, and we think you can take advantage of that."

Recommendations:

Topping Lahr's list of recommended defense stocks is Raytheon.

"There's a big international mix, and we think that their budgets hold up," he said. "Either way, even if they come in and Obama does potentially try to cut some programs down the line, we don't see a lot of exposure at Raytheon."

He also likes Lockheed Martin.

"They do a lot of electronics, training systems, things like that, and those should hold up very well."

Also on his list is Boeing.

Playing Defense

Discussing the top three aerospace and defense stocks, with Troy Lahr, Stifel Nicolaus aerospace & defense analyst and the Power Lunch team.

"They have about six to seven years' worth of backlog to work though, to get them through this downturn, and the market's kind of pricing in a worst-case scenario with Boeing," he said. "We think it's pretty attractive at these levels."